(the “Company” or “Lexaria”) is very pleased to report excellent oil production rates at the new
PPF-12-7 oil well at Belmont Lake, Mississippi. The well is now flowing and selling oil.
As of Friday September 12, the well was producing approx 120 bo/d on a 12/64th choke. For Sept 13 it produced 119 bo/d on an 11/64th choke; and on Sept 14 it produced 119 bo/d on a 10/64th choke. No formation water has been produced. Flowing pressures increased each day as choke sizes were reduced, indicating healthy reservoir pressures. This is one of the highest flow rates ever for a Belmont Lake well, and more than meets Lexaria’s expectations. The 12-7 well is located further east than any other existing well in Belmont Lake field, further expanding the producing boundaries of the field which are still undetermined.
The operator and owners intend to restrict this well to 90 bo/d for the intermediate term on an even more restricted choke, and to monitor the well over time to optimize production in the short and long terms. This allows for more prudent operation of the well and field over time, as many Frio-formation wells can produce oil for as long as 10 or 15 years.
Although earlier sidewall core analysis indicated 19-20 feet (true vertical depth) of oil bearing pay, only the upper 8 feet of the well was perforated in order to stay above the oil/water contact zone.
“Taken within the context of this conservative perforation technique and the restriction from the small choke size, I view the oil production rates from this well as even more positive,” said Chris Bunka, President.
Lexaria congratulates its operator and co-owners of the 12-7 well as the Belmont Lake oil field continues to provide positive results.
Additional information, including longer term performance, will be released when available. Griffin & Griffin Exploration, LLC is the operator of the well which was drilled in Section 41, Township 2 North – Range 4 West of Wilkinson Country, Mississippi.
Lexaria retains a 42% working interest in the producing 12-1 and 12-3 wells; a 50% working interest in the suspended 12-4 and 12-5 wells; and a 13.3% working interest in the 12-7 well. Lexaria is actively reviewing all possible ways of maximizing value from the Belmont Lake oil field assets.
Lexaria’s shares are quoted in the USA with symbol LXRP and in Canada with symbol LXX. The company searches for projects that could provide potential above-market returns.
To learn more about Lexaria Corp. visit www.lexariabioscience.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Chairman & CEO
This release includes forward-looking statements. Statements which are not historical facts are forwardlooking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as “anticipate,” “if,” “believe,” “plan,” “estimate,” “expect,” “intend,” “may,” “could,” “should,” “will,” and other similar expressions are forward-looking statements. Such forward-looking statements are estimates reflecting the Company’s best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. Access to capital, or lack thereof, is a major risk and there is no assurance that the Company will be able to raise required working capital. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company’s public announcements and filings.
There is no assurance that the medical marijuana, CBD sector, or alternative health businesses will provide any benefit to Lexaria, or that the Company will experience any growth through participation in these sectors. There is no assurance that existing capital is sufficient for the Company’s needs or that it will need to attempt to raise additional capital. There is no assurance that any cannabinoid-based product will promote, assist, or maintain any beneficial human health conditions whatsoever. No
statement herein has been evaluated by the Food and Drug Administration (FDA). ViPovaTM products are not intended to diagnose, treat, cure or prevent any disease.
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